SaaS discovery is the process of identifying and cataloging all SaaS applications used within an organization, including both IT-approved and unmanaged shadow SaaS. Effective SaaS discovery provides visibility into SaaS sprawl, security risks, and compliance gaps, enabling IT and security teams to mitigate threats associated with unauthorized or misconfigured applications.
Shadow SaaS Risks and Security Challenges
Organizations face significant security and compliance risks due to shadow SaaS, which consists of applications adopted outside of IT oversight. Common risks include:
Data Exposure
Sensitive corporate data may reside in unapproved SaaS applications with weak security controls
Unauthorized Access
Employees using unmanaged SaaS accounts can inadvertently create security gaps, leading to potential data breaches
Compliance Violations
Untracked SaaS usage can result in regulatory non-compliance with frameworks like GDPR, HIPAA, and SOC 2
SaaS-to-SaaS Integrations
Shadow SaaS often includes unsanctioned integrations that connect business-critical applications to external services, increasing the risk of third-party access abuse
Benefits of SaaS Discovery
Implementing a SaaS discovery solution provides organizations with:
Comprehensive SaaS Visibility
Gain insights into all SaaS applications, including sanctioned, unsanctioned, and third-party integrations
Risk Reduction
Identify and mitigate security misconfigurations, excessive permissions, and orphaned accounts
Compliance Assurance
Ensure SaaS applications align with corporate security policies and regulatory requirements
Cost Optimization
Eliminate redundant or unused SaaS subscriptions to reduce unnecessary expenses
SaaS Discovery Methods
Organizations use various approaches to uncover and monitor SaaS applications. Below is a comparison of different SaaS discovery methods, including their strengths and limitations.
| SaaS Discovery Method | Description | Strengths | Limitations |
|---|---|---|---|
| Cloud Access Security Broker (CASB) | Serves as a proxy between users and applications. Able to analyze network traffic to uncover SaaS usage and enforce security policies | Helps provide authorization status, i.e., sanctioned vs. unsanctioned. Identifies shadow SaaS, monitors data transmission | May lack visibility into encrypted connections. Less effective for remote environments; complex deployment and maintenance. |
| 3rd-Party SaaS-to-SaaS Apps | Discovers apps through integrations with sanctioned SaaS platforms (e.g., Microsoft 365, Google Workspace, Salesforce, etc.) | Expands visibility by identifying third-party apps that connect to core business tools | Limited to applications that integrate with sanctioned SaaS |
| Integrations with IdP Apps | Captures SaaS logins via platforms like Okta and Entra AD | Provides visibility into sanctioned applications and adds context to the approval process for integrating new apps; centralizes authentication visibility | Only detects apps tied to identity providers; does not capture all shadow SaaS. |
| CASB Integrations | Uses CASB data to enhance SaaS discovery capabilities | Leverages existing security investments; without the need for CASB deployment | Does not detect all shadow SaaS |
| Email Scanning | Analyzes email content (e.g., welcome email, subscription authorization, invoices, notifications) to identify SaaS subscriptions and usage | Detects shadow SaaS through financial and onboarding emails; does not require endpoint deployment | Privacy concerns; limited visibility into apps that do not generate email notifications |
| Browser Extension | Monitors SaaS usage via a browser plugin | Captures sanctioned and unsanctioned apps in real-time; has better context than proxy (CASBs), can be configured to block users; basically an agent, but not a complex deployment | Limited to browser-based interactions; different browsers are used by different users; does not track mobile or desktop apps |
| Integrations with SaaS Management Platforms / Financial Apps | Uses spend data from financial systems or SaaS management tools to identify SaaS applications | Provides insights into app purchases and usage trends; enhances cost optimization | Lacks visibility into actual user activity; best used in combination with other methods |
Frequently Asked Questions
Why is SaaS discovery important for security teams?
SaaS discovery helps security teams gain visibility into unauthorized applications, reducing the risk of data breaches, compliance violations, and excessive access permissions.
How does shadow SaaS impact an organization's security?
Shadow SaaS introduces risks such as unapproved third-party integrations, data leakage, and unmanaged user access, which can compromise an organization's security posture.
What is the difference between sanctioned and unsanctioned SaaS?
Sanctioned SaaS is approved and managed by IT, while unsanctioned SaaS (shadow SaaS) is adopted without IT oversight, often leading to security and compliance risks.
How can organizations detect shadow SaaS?
Organizations can use network monitoring, IdP logs, expense tracking, and API-based SaaS discovery tools like Valence Security to identify shadow SaaS applications.
What steps should an organization take after discovering shadow SaaS?
Organizations should assess security risks, revoke unnecessary access, enforce SaaS security policies, and educate employees on secure SaaS adoption practices.
How Valence Helps with SaaS Discovery
Valence provides security teams with full visibility into both sanctioned and unsanctioned SaaS applications, helping organizations reduce shadow IT risks, enforce security policies, and optimize SaaS management.
As SaaS adoption accelerates, individual users and teams frequently integrate new applications without IT oversight, leading to unmanaged identities, security gaps, and compliance risks. Shadow AI tools, such as unapproved GenAI applications, introduce additional concerns by requiring broad data access. Valence enables security teams to proactively discover these risks and take immediate action to secure their SaaS environment.
Key Capabilities include:
- Comprehensive SaaS Inventory:y – Discover and create an inventory of all SaaS applications in use, including shadow IT, shadow AI, and unauthorized integrations
- Risk Identification & Remediation: – Detect non-SSO accounts, inactive accounts, unmanaged third-party integrations, and weak security configurations
- SaaS-to-SaaS & Identity-Based Discovery: – Gain visibility into applications connected via third-party integrations, as well as those linked to identity providers (IdPs) like Okta and Entra ID
- Actionable Security & Governance Controls: – Secure your SaaS ecosystem by eliminating risky apps, enforcing MFA, and managing SaaS sprawl.
Valence’s SaaS discovery capabilities empower organizations to take control of their SaaS environment, mitigating risks while enabling secure and efficient SaaS adoption.
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